January 2025
The Financial Services Authority (Otoritas Jasa Keuangan or "OJK") has recently issued OJK Regulation No. 26 of 2024 on the Expansion of Banking Business Activities ("POJK 26"). This regulation aims to keep pace with the rapid development of the banking sector in Indonesia and provide legal certainty for banks regarding specific banking products. The highlight of POJK 26 is that now, OJK allows conventional commercial banks and sharia commercial banks ("Commercial Banks") to directly invest in companies that support the banking industry ("Supporting Business"). This regulation also addresses several banking activities (and/or products) offered and undertaken by Commercial Banks: